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For a monopolistically competitive firm, profit is maximized when: A.MC < MR. B.MC = P. C.None of the above. D.MC > ATC. E.ATC > P.
For a monopolistically competitive firm, profit is maximized when:
A.MC < MR.
B.MC=P.
C.None of the above.
D.MC>ATC.
E.ATC>P.
For a monopoly firm, if AVC = $20, P = $12, and ATC = $22, then the firm should:
- A.produce at the point where MC = MR.
- B.increase production.
- C.reduce production.
- D.shut down.
For the monopolist, average profit per unit equals:
- A.P - MC.
- B.P - ATC.
- C.P - AVC.
- D.P - MR.
A firm operates in amonopolistically competitive market, if the firm is earning a normal profit, then:
- A.P< MR.
- B.P= ATC.
- C.P= MC.
- D.P= MR.
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